Legal Question in Environmental Law in New Jersey

How to Prevent Future Liability?

I was manufacturer's rep for an industrial cleaner for a number of years. I would invoice the customer and be paid directly. Sales were made nationwide. I no longer am involved with this product and am now in a totally different industry. Should I be concerned of any potential future environment liability for past sales of this cleaner and if so how do I protect myself 100%?

Asked on 12/17/06, 1:17 pm

1 Answer from Attorneys

John Corbett Corbett Law Firm LLC

Re: How to Prevent Future Liability?

You should be concerned, but the countermeasures don't have to be difficult. The best situation would be if you were doing business as an LLC or corporation when you were selling. That is what I would have advised because it would have provided strong protection against personal liability. If you had done that, your work is now easier. Your current line of defense is your insurer. Look at your business policies that covered you at the time to determine if they cover liability for acts committed at the time (still good) or if they are "claims-made" policies (not still good). If necessary, for a fee, you will be able to find an insurer who will provide coverage against claims made based on your prior business activities.

You should also preserve copies of the ads, instructions, warnings, and other documentation that were used in connection with the products.

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Answered on 12/18/06, 2:58 pm

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